Amazon Cuts Affiliate Marketing, Google Versus French Publishers, Streaming Services and Movies

The Internet RevolutionI already explained what happened to newspapers when distribution erased local newspapers moats in the blink of an eye; as I suggested at the beginning, though, this was not an isolated incident but a sign of what was to come. Back in July I laid out how the acquisition of Dollar Shaving Club suggested the same process was ha... See more

For a number of years, media and commerce operated in a mutualistic manner. For a time, sites like Amazon, Target, and Walmart needed product demand and digital publishers would provide that demand for a percentage of each sale made. It was a win / win. Media could monetize its traffic in new ways and brands could advertise without upfront costs.

The fact that Amazon just drastically reduced its affiliate fees is perfect evidence of how little negotiating power these individual sites have in this value chain, despite their collective importance.

It used to be that media organizations had a big advantage by virtue of owning printing presses and delivery trucks, or broadcast licenses; celebrities and politicians would have their proclamations carried across those same mediums by virtue of their popularity or power. The same advantages applied to other areas of the economy like retail and con... See more

Super-AggregatorsWhat makes Facebook and Google unique is that not only do they have zero transaction costs when it comes to serving end users, they also have zero transaction costs when it comes to both suppliers and advertisers.Start with supply: not only is the vast majority of online content accessible to Google’s search engine (unsurprisingly,... See more

An aggregator like Facebook or Airbnb brings all the relevant goods, services, or information that a consumer might seek into one place, and it gathers all the consumers there, too. Netflix is a one-stop shop for film and television. YouTube is a one-stop shop for user-generated video. Uber is a one-stop shop for car rides. These aggregators amass ... See more